What is an Infrastructure Contributions Plan (ICP)?

An Infrastructure Contributions Plan (ICP) is a system for funding basic and essential local infrastructure required by a new community. An ICP ensures that developers within the precinct contribute to the cost of providing new intersections, local open space and community facilities.

An ICP is prepared by a planning authority, usually a council or the Minister for Planning, or a public authority that has been authorised by the Minister, for example the Victorian Planning Authority. The Planning and Environment Act 1987 and the Ministerial direction on the preparation and content of Infrastructure Contributions Plans set out the requirements for the preparation and approval of an ICP.

An ICP may be made of one or two parts:

• Standard levy: A single levy that is used to fund transport, community and recreation infrastructure and public land provision. It is a pre-determined monetary rate set by the Minister for Planning through the Ministerial Direction, designed to provide a fair and reasonable budget for funding basic infrastructure essential for new urban development. The standard levy rates for the Metropolitan Greenfield Growth Areas development settings are indexed on 1 July each year in accordance with the indexation method specified in the Ministerial Direction.
• Supplementary levy: a non-standard levy set by the planning authority based on the estimated costs of infrastructure works informed by topographical, geographical, environmental or other physical constraints.

For more information, refer to the ICP Guidelines Summary by the Department of Transport and Planning.

For more information, see Infrastructure Contributions Plans – FAQs